Daily Gold & Silver Market Report – 10/15/2015

Marcey Hollon

10/15/2015 10:55:00 AM

GOLD RETREATS ON U.S. INFLATION DATA; GASOLINE WEIGHS ON CONSUMER PRICES

News of a stronger-than-expected U.S. inflation report boosted the dollar over the euro and has Gold retreating. Gold previously rallied 1.4 percent on sluggish economic data, but Thursday’s data showing a steady gain in inflation renewed speculation of a Federal Reserve interest rate increase. "Over the last couple of days the Gold market has been pricing out the Fed (raising rates)... because of data weakness. Today's data wasn't as weak as expected, so there's a feeling that it maybe ran too fast," ABN Amro analyst Georgette Boele said. The recent rise in Gold prices slowed physical buying of the metal.

Low gasoline prices contributed to U.S. consumer prices hitting an eight-month low, yet steady momentum in goods and service prices suggest inflation firming up. Data Thursday showed new applications for unemployment benefits at a 42-year low. Speculation of the Federal Reserve raising interest rates has been revived on the strengthening labor market as well as the firming of underlying inflation. The core Consumer Price Index, which excludes energy and food costs, fell 0.2 percent last month, according to the U.S. Labor Department. A significant hurdle in raising interest rates is low inflation, which continues to stay below the Fed’s 2 percent mark. 

At 11:54 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,189.10 Up $6.30
• Silver, $16.20 Down $0.01
• Platinum, $1002.10 Up $6.70
• Palladium, $704.00 Up $2.10

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